Canntab Therapeutics Ltd (CSE:PILL.CN) (OTCQB:CTABF) announced a major milestone Tuesday, striking a purchase deal with MediPharm (TSE:LABS)(OTCQX:MEDIF), which will start distributing and selling the former's cannabinoid tablets across Canada this summer.
Canntab said it was kicking off production of its instant release tablets today and already received its first order under the deal with MediPharm.
The exact value of shipments under the agreement will be determined no later than June 30 this year, but is expected to top C$1 million, the firm said in a statement.
"We are especially pleased to have accomplished this major milestone in the face of the Covid-19 Pandemic which has caused major uncertainty and disruption in world markets, including, Canada," said Jeff Renwick, Canntab's CEO.
"Canntab has continued to work diligently to build shareholder value during this crisis as we are designated an essential business. Signing our first purchase order with a quality partner having a global reach such as MediPharm is simply the tip of the iceberg for Canntab."
The orders will be a mix of Canntab's proprietary instant release tablets delivering THC, CBD and a combination of THC/CBD in 12 different strengths.
The tablets will be sold in the coming months to medical and adult-use consumers across Canada, via licensed provincial dispensaries.
Canntab has already filed its 60-day notice for approval to sell the instant release products with Health Canada and expects that its tablets will be available for sale in the early summer.
The company is currently the only company in Canada capable of delivering THC, CBD and/or any combination THC/CBD in pharmaceutical-grade tablets or hard pills.
Shares surged 12.24% in Toronto to C$1.10.
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